Chronicles Of Depression 2.0: #405: Colombia

The schemes, some of which the government suspects were money laundering devices for drug traffickers, tumbled one after the other earlier this week as the organisers made off with the funds. The companies had offered interest rates of up to 150 per cent to those who drew in their friends and family to the schemes, building up a pyramid of investors seeking a swift profit on their deposits.

But after the schemes collapsed, the duped investors then looted offices and fought with riot police who had to fire tear gas to break up the angry mobs.

The worst of the violence was in the southwestern city of Popayan, where 5,000 people took to the streets and attacked an office where one of the pyramid schemes operated, carrying off computers, telephones, desks and chairs. A semblance of calm was only imposed after police in full riot gear, backed by armoured vehicles, arrived and fired tear gas canisters into the crowds.